Member of Parliamentary Finance: The government is heading for an "urgent" economic step to control the dollar situation

Member of Parliamentary Finance: The government is heading for an "urgent" economic step to control the dollar situation


0/12/08







Baghdad today -


 Baghdad A member of the Parliamentary Finance Committee, Ahmed Hama Rashid, spoke today, Tuesday (December 8, 2020), about a new step that the government will take to reduce the exit of hard currency from the country and control the gates of currency auction.

 Deputy Rashid commented on what the media reported about the existence of negotiations between Iraq and the International Monetary Fund, to determine a new exchange rate for the dollar against the Iraqi dinar, saying that "there are tools that the government uses to adjust the exchange rate, which is considered (income from inflation), or an increase Revenue through currency auction, to reduce the deficit gap. "

 He added during his speech to (Baghdad Today): "The government will also work to absorb the purchasing power of the Iraqi dinar, to reduce the marginal tendency for consumption, thus the state's imports will decrease, which leads to a decrease in the rates of the exit of the dollar from Iraq, and this also leads to a reduction in the dollar demand." .

 He continued, "This mechanism allows the central bank to control the outlets for selling the currency, with the aim of also controlling the exchange rates of the dollar."

 Regarding the reasons for this approach, the deputy affirmed that "the government is obliged to follow this path, since Iraq has nothing but oil as a main source of revenue through its export and the entry of hard currency to it."

 Earlier, Mazhar Muhammad Salih, the financial advisor to Prime Minister Mustafa Al-Kazemi, commented on Monday (7 December 2020) on Iraq's negotiations with the International Monetary Fund regarding determining the exchange rate of the dollar against the Iraqi dinar.

 The appearance of Muhammad Salih said, "All matters related to negotiations between Iraq and the International Monetary Fund to determine the exchange rate of the dinar are in the discussion stage only." 

He added, "The correct decision is for the cabinet when it discusses the draft budget very soon." The Finance Committee revealed before that, negotiations between Iraq and the IMF on determining the exchange rate of the dollar, while warning that those decisions may lead to inflation, which greatly affects the owners of limited income.



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Clarification on the Central Bank's decisions to control the dollar exchange rate and the reasons for its recent jump


 2020/12/08 





Baghdad today -

 Baghdad The economist and member of the Board of Directors at the Central Bank, Majed Al-Suri, spoke today, Tuesday (December 8, 2020), about the reasons for the high exchange rate of the dollar in local markets. 

Al-Suri said in an interview with (Baghdad Today), that "speculation, political and economic confusion, and citizens' lack of confidence in the future of the Iraqi dinar are among the main reasons for the high exchange rate of the dollar in the local markets."

 On the role of the central bank in dealing, with fears of a high exchange rate of the dollar, al-Suri indicated that "the central bank sells dollars at an exchange rate ($ 1190), and there is no change in the price. 

He continued: "Knowing that up to now, there is no intention of the Central Bank to raise the exchange rate, and all that is being circulated of opinions issued by MPs and politicians about fears of a high exchange rate represent means of pressure to achieve certain goals." He warned that "the central bank seeks to pump hard currency, for the purpose of controlling its exchange rate in the local markets."


 He pointed out that "private banks and banking companies have been identified to buy 30 thousand dollars a week," explaining that "this reduction in the infusion of hard currency came because of the lack of travel for tourism, medical treatments, and the lack of liquidity from hard currency."

 As the picture indicated, "the Central Bank decided to receive foreign transfers in the form of 75% for the dollar, and 25% for the Iraqi dinar."

 The exchange rate of the dollar rose again in the local markets in Iraq, to touch the new high today, Tuesday, 128 thousand dinars for every 100 US dollars. 

The selling price of the dollar was 127,500 Iraqi dinars, while the purchase price was 126,500, roughly. As for international foreign exchange rates, the euro reached 100 euros per $ 121.20.







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